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DNeX enters into a consortium agreement to maintain submarine cables in Indonesia

Cyberjaya, 25 January 2021 – Dagang NeXchange Berhad (“DNeX”), through a consortium formed between business unit PT DNeX Telco Indonesia (“PT DTI”) and PT Samudera Mbiantu Sesami (“PT SMS”), has signed a Consortium Agreement with PT Infrastruktur Telekomunikasi Indonesia (“TelkomInfra”) for the deployment, management, maintenance and repair as well as other value added works for the Maintenance Support Sistem Komunikasi Kabel Laut within and outside of Indonesia.

Under the agreement, the consortium is established for a period of three years and may be extended over the next three years. TelkomInfra will be appointed as the consortium leader and will be responsible for logistics arrangements, securing the various project permits as well as overseeing project management.

Meanwhile, consortium members PT DTI and PT SMS will be tasked with ensuring the submarine cable laying vessel and all crew, tools and systems required to carry out the works are operationally ready.

Upon securing any contract, all parties will enter into a definitive partnership agreement.

TelkomInfra is a wholly-owned subsidiary of PT Telkom Indonesia Tbk, an Indonesian multinational telecommunications conglomerate, which is listed on the Indonesia Stock Exchange and has a secondary listing on the New York Stock Exchange.

“We are pleased to enter into this consortium which such reputable players in Indonesia as this can significantly strengthen our likelihood of securing more submarine cable laying projects. Submarine cable laying and repair works are not new to the Group as we had previously completed smaller-scale projects in Indonesia and Philippines. We are grateful to our partners in Indonesia for their trust in our capabilities,” said Dato’ Sri Syed Zainal Abidin Syed Mohamed Tahir, Group Managing Director of DNeX.

Details of a forthcoming partnership agreement, he added, are currently being finalised.

He said the Group is optimistic on the growth prospects of the business as there are not many vessels that are certified to operate in this niche area of submarine cable laying for telecommunications. Demand for such vessels have been on the rise due to advancement of telecommunications systems, which require powerful and effective transmission lines, he added.